Buying a home is one of the most significant milestones of your life, and it comes with a flood of deadlines, decisions, and paperwork. In all the hustle, one detail often gets overlooked until it’s almost too late: your home insurance start date.
The short answer? You need home insurance in place before you take legal ownership of the property, regardless of whether you’re moving in that day. However, depending on your situation—whether it’s resale, new build, vacant possession, or renovation—the specifics matter.
In this article, we’ll cover exactly when home insurance should start, what lenders require, how coverage works before and after possession, and what mistakes to avoid. Whether you’re closing in a week or just beginning your home search, this guide will help you get your timing right.
Home insurance isn’t just a checkbox on your to-do list, it plays a critical role in protecting your investment from the moment you become legally responsible for the property. Misunderstanding the timing can lead to serious financial consequences, especially if something goes wrong before you’ve even moved in. Here’s what you need to know about aligning your coverage with your closing date.
When you sign your mortgage and take legal possession of the home, the responsibility for that property shifts to you.
That means if something goes wrong—a fire, break-in, flood, or storm damage—you’re financially liable. That’s why lenders require a home insurance policy to be active at 12:01 a.m. on closing day. Without it, mortgage funds won’t be released.
Many buyers confuse possession with moving day. But you become the legal owner at closing—even if you’re not stepping inside for a week. If there’s a delay in moving or you’re doing renovations first, you still need coverage from the day your name is on the title.
Most mortgage lenders require a binder letter or proof of insurance 5–10 business days before closing. Waiting too long can cause the transaction to stall. We recommend finalizing coverage at least two weeks before closing, allowing your insurer sufficient time to underwrite and your lawyer enough time to review.
Not every home purchase follows the same path, and neither should your insurance policy. The type of property you’re buying and your move-in plans can affect when coverage needs to begin and what type of policy you’ll need. Whether it’s a quick move-in or a longer handover period, here’s how timing and coverage requirements shift depending on your specific situation.
This is the most straightforward situation. You need your insurance policy to be active on the day of closing. If you’re moving in right away, standard homeowner’s coverage applies.
For new builds, especially ones you’re purchasing pre-construction, insurance may need to start before final occupancy. This is because builders often schedule multiple walkthroughs, interim occupancy periods, or staggered handovers. Your insurer will help determine if you need temporary or course-of-construction coverage leading into your permanent policy.
If the home will be vacant for more than 30 days post-closing, you may need a vacancy permit or specialized coverage. Vacant homes have a higher risk (e.g. break-ins, undetected damage), so standard policies may not apply without endorsements.
Doing renos before move-in? Some policies exclude coverage during substantial renovations. In such cases, you may need a builder’s risk policy or a renovation rider. Consult with your broker to ensure you’re adequately covered if the drywall starts to fall.
Home insurance offers peace of mind for everything that comes with owning a property. From the physical building to personal belongings and liability protection, a standard homeowner’s policy covers a lot more than people often realize. Here’s a breakdown of the key coverages you can expect.
Protects the structure of the home, including walls, roof, plumbing, electrical systems, HVAC, and any attached structures, such as garages or decks.
Even if you haven’t moved in, the policy may include coverage for belongings in transit or temporarily stored. If you’re using movers or storing off-site, inform your broker.
Detached garages, sheds, fences, and other permanent structures on the property are typically covered, but they must be disclosed and itemized.
This kicks in immediately, even if you’re not occupying the property. It protects you from lawsuits if someone is injured on-site, such as a contractor, mover, or visitor.
This covers temporary housing expenses if the home becomes uninhabitable due to an insured peril.
When it comes to home insurance, timing and transparency are everything. Unfortunately, many buyers make avoidable missteps that can delay their closing, or worse, leave them exposed when something goes wrong. Here are some of the most common pitfalls to watch for and how to avoid them.
This is the #1 mistake. Your mortgage lender will block closing if insurance isn’t in place. Start the process 2–3 weeks before closing, not the week of the closing.
As mentioned, legal ownership begins on closing day, not move-in day. You need full coverage from day one.
Insurers hate surprises. If the home will be vacant, under construction, or unoccupied for an extended period, say so. Your policy needs to reflect reality, or it may be voided at claim time.
Rates can vary significantly depending on your credit, claims history, property type, and other factors. Regal Insurance compares options from multiple insurers to find you the best value—and the right fit.
It’s one thing to understand the rules, it’s another to see what can happen when they’re ignored. These real-life scenarios highlight just how costly it can be to delay, overlook, or misunderstand your home insurance requirements. A few missteps in timing or coverage can lead to major financial consequences.
A couple closes on their new home but doesn’t move in for 10 days. During that time, a burst pipe floods the basement. Because they delayed activating their policy until move-in day, the entire claim is denied.
An investor purchases a property with the intention of renting it out. The home sits vacant for 45 days while being staged. A break-in occurs, and because the policy didn’t include a vacancy endorsement, no payout is made.
A new homebuyer receives occupancy but not the final closing for several weeks. During this window, fire damages the kitchen. The builder’s insurance won’t cover it, and the buyer hadn’t yet activated their policy. Out-of-pocket losses total $22,000.
Securing home insurance isn’t something to leave until the last minute. To keep your closing on track and avoid gaps in coverage, it’s important to plan ahead. This simple timeline walks you through what to do (and when) to make sure your policy is in place before the keys change hands.
Whether you’re buying your first home or your fifth, getting your insurance timing right is crucial. At Regal Insurance, we help Ontario homebuyers avoid costly gaps, delays, or missteps by customizing coverage based on your unique closing timeline.
We work with Canada’s top insurance providers to ensure you get the proper protection—at the right price—before the keys are even in your hand.
Have questions about insuring your new home? Call us or request a quote today. We’ll make sure you’re protected from day one.
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